Explain the characteristics of parntership businesses.

Solution

The characteristics of a Partnership business are as follows :

1. Number of members:
A minimum of two or more persons are required for starting a partnership business.

2. Sharing of profit :
Partnership should be carried for profit motive. Partnerships for religious purposes are not included under the Partnership Act.

3. Agency relationship :
Principal-agent relationship is must in the partnership, where each partner acts as an agent of the firm.

Some More Questions From Forms of Business Organization Chapter

What do you understand by a Private Company?

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Forms Of Business Organization

Explain the characteristics of parntership businesses.

Some More Questions From Forms of Business Organization Chapter

What do you understand by a Private Company?

What do you understand by a Public Company?

Under what circumstances, is a partnership form of business organisation suitable ?

Write a short note on 'implied agency', one of the important characteristics of partnership and also true test of partnership.

Would you say that the sole proprietorship involves a lengthy and expensive procedure for its registration?

Explain whether the liability of a sole proprietorship is limited to the extent of his share in business.

Only the Karta has unlimited liability in HUF. Explain.

Define 'Partner by Holding Out'.

Explain how the company is an artificial person.

Discuss whether a company's existence is affected by the death of a member.

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